Comments on: “What Is a Mortgage Cram Down??…” http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/ Mon, 22 Mar 2010 08:13:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: “Market Musings on a Monday….” : NO QUARTER http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1115209 “Market Musings on a Monday….” : NO QUARTER Tue, 13 Jan 2009 03:24:36 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1115209 [...] Also in regard to Citi, it was no surprise to me that they were the one banking institution publicly supporting the principal reduction program known as a “Mortgage Cram Down” (highlighted here at NQ on both December 23rd, “Everything’s Negotiable“, and January 1st, “What’s a Mortgage Cram-Down?”) [...] [...] Also in regard to Citi, it was no surprise to me that they were the one banking institution publicly supporting the principal reduction program known as a “Mortgage Cram Down” (highlighted here at NQ on both December 23rd, “Everything’s Negotiable“, and January 1st, “What’s a Mortgage Cram-Down?”) [...]

]]> By: BWare http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1104217 BWare Fri, 02 Jan 2009 19:15:52 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1104217 As sad as it sounds, I believe that you are spot on in your assessment of the collateral damage exposure for taxpayers. I've never been a fan of the bailout -- thought it was the Mother of all Pork Programs -- and "Big Bank Hank" Paulson has even turned corporate gifting into a fiasco. Having said that, taxpayers can choose to be hit by either a backdraft (proactive action) or a tsunami (do nothing). If you think that honest taxpayers getting stiffed with the bill at the end of Bailoutpalooza is a bad thing, wait till you see what the IMF has in store for US taxpayers after "Inflation Gone Wild" and "Runaway Dollar Shorting" make their US run. I've heard this talk of mortgage cram-down for some time, and we'll see it in some diluted form in the near future. What really needs to happen is some sort of MBS/CDO eminent domain program, where the govt can seize entire MBS/CDO issuances, then work out orderly loss mitigation strategies. This beats getting caught in the crossfire of "tranche warfare" when attempting loss mit on a loan-by-loan basis. We'll have to see how things go...it'll be fun to watch...gotta have a positive mental outlook about these things... BWare <a href="http://www.subprimeloananalysis.com" rel="nofollow">Subprime Loan Analysis</a> As sad as it sounds, I believe that you are spot on in your assessment of the collateral damage exposure for taxpayers. I’ve never been a fan of the bailout — thought it was the Mother of all Pork Programs — and “Big Bank Hank” Paulson has even turned corporate gifting into a fiasco.

Having said that, taxpayers can choose to be hit by either a backdraft (proactive action) or a tsunami (do nothing). If you think that honest taxpayers getting stiffed with the bill at the end of Bailoutpalooza is a bad thing, wait till you see what the IMF has in store for US taxpayers after “Inflation Gone Wild” and “Runaway Dollar Shorting” make their US run.

I’ve heard this talk of mortgage cram-down for some time, and we’ll see it in some diluted form in the near future. What really needs to happen is some sort of MBS/CDO eminent domain program, where the govt can seize entire MBS/CDO issuances, then work out orderly loss mitigation strategies. This beats getting caught in the crossfire of “tranche warfare” when attempting loss mit on a loan-by-loan basis.

We’ll have to see how things go…it’ll be fun to watch…gotta have a positive mental outlook about these things…

BWare
Subprime Loan Analysis

]]> By: LD http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103946 LD Fri, 02 Jan 2009 12:40:36 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103946 Will do with pleasure. Will do with pleasure.

]]> By: Deb Cupples http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103862 Deb Cupples Fri, 02 Jan 2009 05:56:57 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103862 Hi LD, I've read your Nov. 12 post and would like to email you about it. If you have time, would you email me so that I'll have your address? thecrux@bucknakedpolitics.com Hi LD,

I’ve read your Nov. 12 post and would like to email you about it. If you have time, would you email me so that I’ll have your address?

thecrux@bucknakedpolitics.com

]]> By: EWard http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103697 EWard Thu, 01 Jan 2009 23:22:11 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103697 scorbs Having a judge change a mortgage loan spells disaster. They do not understand the mortgage system. These loans are bundled in packages and resold in the secondary market to investors. A number of these investors that buy the loans are charities and retirement fund organizations representing school districts, county and state pensions. Furthermore, why should investors be penalized for the mistakes of the borrowers? It will not help either individuals and businesses wanting to borrow and will hurt the banks. If you think the banks are slow to act the judicial process is not known for their expediency. scorbs

Having a judge change a mortgage loan spells disaster. They do not understand the mortgage system. These loans are bundled in packages and resold in the secondary market to investors. A number of these investors that buy the loans are charities and retirement fund organizations representing school districts, county and state pensions. Furthermore, why should investors be penalized for the mistakes of the borrowers? It will not help either individuals and businesses wanting to borrow and will hurt the banks.

If you think the banks are slow to act the judicial process is not known for their expediency.

]]> By: Ellen D http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103668 Ellen D Thu, 01 Jan 2009 22:17:21 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103668 For the most part, the banks are lurching all over the place. The companies I handle are (knock wood) pretty stable and even self-financing however I have spent the past 4 years building up their banking credit history with ever-rising loan requests paid back early. Their credit history is exemplary. However last month our normally OK bank suddenly went nuts and made the insane request that we deposit our loan request with them as collateral and they then loan us back the exact same amount of money. At interest higher than our deposit earned of course. I don't know what they are smoking to even send their bank vice-presidents out with such an absolutely moronic suggestion. They would have been better off to just turn us down flat. Yesterday, to show how tough they are getting, they questioned our President's normal signature on a check and refused to accept an employee's recently-expired passport as identification. Huh? The passport expired but that doesn't mean the person's life is nullified as of that date. She still has the same face and signature which is clearly on the passport. I'm sorry, but as of the date your passport expires, you no longer exist. The bank says so. It's time for a sanity check of all bankers. For the most part, the banks are lurching all over the place.
The companies I handle are (knock wood) pretty stable and even self-financing however I have spent the past 4 years building up their banking credit history with ever-rising loan requests paid back early. Their credit history is exemplary.
However last month our normally OK bank suddenly went nuts and made the insane request that we deposit our loan request with them as collateral and they then loan us back the exact same amount of money. At interest higher than our deposit earned of course.
I don’t know what they are smoking to even send their bank vice-presidents out with such an absolutely moronic suggestion. They would have been better off to just turn us down flat.
Yesterday, to show how tough they are getting, they questioned our President’s normal signature on a check and refused to accept an employee’s recently-expired passport as identification. Huh? The passport expired but that doesn’t mean the person’s life is nullified as of that date. She still has the same face and signature which is clearly on the passport. I’m sorry, but as of the date your passport expires, you no longer exist. The bank says so.
It’s time for a sanity check of all bankers.

]]> By: TeakwoodKite http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103658 TeakwoodKite Thu, 01 Jan 2009 22:00:44 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103658 I loved Hotdog Beach, brings back fond memories of the Hamptons as a kid. This coming year will be a "take what you can get" for many. I see now indication that the "model is broken" you wrote so well about is going to change. Greed is a hard human trait to *"manage". (*not the right word) I loved Hotdog Beach, brings back fond memories of the Hamptons as a kid.

This coming year will be a “take what you can get” for many. I see now indication that the “model is broken” you wrote so well about is going to change. Greed is a hard human trait to *”manage”. (*not the right word)

]]> By: scorbs http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103645 scorbs Thu, 01 Jan 2009 21:40:12 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103645 Sen. Clinton was discussing this program some time ago as well as Bair. Even if the government doesn't participate, judges should have a right to lower mortgage principal since the banks are slow to do so. Sen. Clinton was discussing this program some time ago as well as Bair. Even if the government doesn’t participate, judges should have a right to lower mortgage principal since the banks are slow to do so.

]]> By: EWard http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103605 EWard Thu, 01 Jan 2009 20:17:31 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103605 LD - Great article about an important financial story that touches all our lives. The mortgage cram down idea is bad for the economy. The bailout money given to financial institutions should be regulated to help the homeowners with their mortgages. A judge has no business or expertise in making these decisions. The banks shouldn't suffer because the government doesn't have their act together. I agree with the other posters that all the government is doing is creating more irrelevant departments at the taxpayer's expense. LD – Great article about an important financial story that touches all our lives. The mortgage cram down idea is bad for the economy. The bailout money given to financial institutions should be regulated to help the homeowners with their mortgages.

A judge has no business or expertise in making these decisions. The banks shouldn’t suffer because the government doesn’t have their act together. I agree with the other posters that all the government is doing is creating more irrelevant departments at the taxpayer’s expense.

]]> By: LD http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103584 LD Thu, 01 Jan 2009 19:54:12 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103584 Teak....To be perfectly frank, AIG is already dead and the government money is merely propping them up. Reminds me of the movie, "Weekend at Bernies'." AIG sold a division, Hartford Boiler,( this division insures engineering programs) to Allianz for $750 million. AIG projected that they would receive somewhere between $1 bln and $2 bln for that division. The unwind of AIG will continue to keep insurance companies in general under pressure throughout 2009. Happy New year to you and yours as well!! Teak….To be perfectly frank, AIG is already dead and the government money is merely propping them up. Reminds me of the movie, “Weekend at Bernies’.”

AIG sold a division, Hartford Boiler,( this division insures engineering programs) to Allianz for $750 million. AIG projected that they would receive somewhere between $1 bln and $2 bln for that division.

The unwind of AIG will continue to keep insurance companies in general under pressure throughout 2009.

Happy New year to you and yours as well!!

]]> By: TeakwoodKite http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103574 TeakwoodKite Thu, 01 Jan 2009 19:40:51 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103574 LD Happy New Year to you and yours. If there a silver lining in all this mess, I'm hoping it will be shining a light on the corporate welfare culture. "what is too big to fail", needs to be looked everyday. On CNN this am, they had AIG on a "death watch", which speaks volumes about the billions of dollars (and counting) of tax payer money they have recieved and for all that they still are gasping for all they are worth. I think it may be better to let them fail. LD Happy New Year to you and yours.

If there a silver lining in all this mess, I’m hoping it will be shining a light on the corporate welfare culture. “what is too big to fail”, needs to be looked everyday.

On CNN this am, they had AIG on a “death watch”, which speaks volumes about the billions of dollars (and counting) of tax payer money they have recieved and for all that they still are gasping for all they are worth.

I think it may be better to let them fail.

]]> By: PamFlorida http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103551 PamFlorida Thu, 01 Jan 2009 19:11:40 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103551 Your post brings up excellent points on Fed spending and warrants further comments in a separate discussion. The Federal payroll has grown enormously (over 9,000 jobs added in the first 3 quarters of 2008), particularly in the last 8 years. The constant talk of how "entitlement" spending is bankrupting our country is just smoke and mirrors to cover up the outrageous growth of gov. agencies and bureaucracy. Your point is well taken. I hope someone will address this issue at NQ very soon. Your post brings up excellent points on Fed spending and warrants further comments in a separate discussion.
The Federal payroll has grown enormously (over 9,000 jobs added in the first 3 quarters of 2008), particularly in the last 8 years.
The constant talk of how “entitlement” spending is bankrupting our country is just smoke and mirrors to cover up the outrageous growth of gov. agencies and bureaucracy.
Your point is well taken. I hope someone will address this issue at NQ very soon.

]]> By: Queenie http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103531 Queenie Thu, 01 Jan 2009 18:29:06 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103531 And is there any wonder why Bush and Cabal let this guy take an easy ride to the White House.. think of Poppy Bush's daddy..Prescot and how he got off the treason charges ..because of the NY Banking community!! And is there any wonder why Bush and Cabal let this guy take an easy ride to the White House..
think of Poppy Bush’s daddy..Prescot and how he got off the treason charges ..because of the NY Banking community!!

]]> By: Texas Playwright http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103512 Texas Playwright Thu, 01 Jan 2009 18:02:21 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103512 The more we vet bho and cabal, the more we'll know about the banking system at home and abroad running our country. So many people have yet to connect the dots. We must keep pounding out the info. The more we vet bho and cabal, the more we’ll know about the banking system at home and abroad running our country. So many people have yet to connect the dots. We must keep pounding out the info.

]]> By: I'm a Linda too http://www.noquarterusa.net/blog/2009/01/01/what-is-a-mortgage-cram-down/#comment-1103505 I'm a Linda too Thu, 01 Jan 2009 17:52:57 +0000 http://www.noquarterusa.net/blog/?p=9743#comment-1103505 lol Thanks. Boy, pictures can be deceiving huh? :) lol Thanks. Boy, pictures can be deceiving huh? :)

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